Calendrier du 09 mars 2021
Applied Economics Lunch Seminar
Du 09/03/2021 de 12:30 à 13:30
FABRE Antoine ()
Udapting rental values for local taxation : an ex ante evaluation in the French context
écrit avec Guillaume Chapelle, Chloé Lallemand
Rental values used for French local taxation on real estate are currently drawn from a 1970 evaluation, and a recent law plans to update them. This will imply a reallocation of these values between households, and then a reallocation of the tax burden. This paper provides an ex ante evaluation of this update, focusing on the biggest French urban areas. We use exhaustive administrative data on local taxation and housing market transactions in order to estimate for each dwelling the difference between the current administrative rental value and an updated one. The year of construction is a significant factor of this difference according to the results. Values of dwellings built before 1950 would increase by 15% on average, while values of the those built after this period would decrease by 16%. Our results also predict substantial increases in values in further suburbs. This could be interpreted as the result of urban sprawl observed over the last 50 years. On average, values of households in the first decile of income would decrease by 5.6%, while those of households in the last decile would increase by 9%.